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Find the difference between simple interest and compound interest on 15625 rupees at 12% per annum for 3 years?
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Find the difference between simple interest and compound interest on 1...
Introduction
When you deposit money in a bank, you earn interest on it. There are two types of interest- simple interest and compound interest. Simple interest is the interest earned only on the principal amount. Compound interest is the interest earned on both the principal amount and the interest earned on it.
Given Data
Principal amount (P) = Rs. 15625
Rate of interest (R) = 12%
Time (T) = 3 years
Calculation of Simple Interest
Simple interest (SI) = (P * R * T) / 100
SI = (15625 * 12 * 3) / 100
SI = Rs. 5625
Calculation of Compound Interest
Compound Interest (CI) = P[(1 + R/100) ^ T - 1]
CI = 15625[(1 + 12/100) ^ 3 - 1]
CI = Rs. 7523.50
Calculation of the Difference
Difference = CI - SI
Difference = 7523.50 - 5625
Difference = Rs. 1898.50
Conclusion
The difference between simple interest and compound interest on Rs. 15625 at 12% per annum for 3 years is Rs. 1898.50. The compound interest earned is higher than the simple interest earned as the interest is calculated on both the principal amount and the interest earned on it in compound interest.
When you deposit money in a bank, you earn interest on it. There are two types of interest- simple interest and compound interest. Simple interest is the interest earned only on the principal amount. Compound interest is the interest earned on both the principal amount and the interest earned on it.
Given Data
Principal amount (P) = Rs. 15625
Rate of interest (R) = 12%
Time (T) = 3 years
Calculation of Simple Interest
Simple interest (SI) = (P * R * T) / 100
SI = (15625 * 12 * 3) / 100
SI = Rs. 5625
Calculation of Compound Interest
Compound Interest (CI) = P[(1 + R/100) ^ T - 1]
CI = 15625[(1 + 12/100) ^ 3 - 1]
CI = Rs. 7523.50
Calculation of the Difference
Difference = CI - SI
Difference = 7523.50 - 5625
Difference = Rs. 1898.50
Conclusion
The difference between simple interest and compound interest on Rs. 15625 at 12% per annum for 3 years is Rs. 1898.50. The compound interest earned is higher than the simple interest earned as the interest is calculated on both the principal amount and the interest earned on it in compound interest.
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Find the difference between simple interest and compound interest on 1...
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Find the difference between simple interest and compound interest on 15625 rupees at 12% per annum for 3 years?
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Find the difference between simple interest and compound interest on 15625 rupees at 12% per annum for 3 years? for Class 8 2024 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about Find the difference between simple interest and compound interest on 15625 rupees at 12% per annum for 3 years? covers all topics & solutions for Class 8 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find the difference between simple interest and compound interest on 15625 rupees at 12% per annum for 3 years?.
Find the difference between simple interest and compound interest on 15625 rupees at 12% per annum for 3 years? for Class 8 2024 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about Find the difference between simple interest and compound interest on 15625 rupees at 12% per annum for 3 years? covers all topics & solutions for Class 8 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find the difference between simple interest and compound interest on 15625 rupees at 12% per annum for 3 years?.
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